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Non-independent Research Daily Softs Technical Charts

Non-independent Research

Daily Softs Technical Charts

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NY 2nd Month Sugar Futures

NY sugar edged higher yesterday as intraday trading after support at 17.66 held firm causing the market to close higher at 17.83. Stochastics are falling, but %K/%D is seen converging on the upside, and have given a buy signal. Likewise, the MACD diff is negative and is showing signs of convergence, highlighting a potential change in momentum. To confirm improving buying pressure prices need to close above 18.00 and then target 10 DMA resistance at 18.21. On the downside, the rejection of prices above 18.00 could trigger losses back to 17.66 before targeting 17.50. Buying pressure was weak, and the candle formed an inside bar suggesting there might be a lack of appetite below 17.66. The indicators confirm a change of trend in the near term.

Ldn 2nd Month Sugar Futures

Ldn sugar futures gained ground yesterday as protracted buying pressure prompted a test of support at 477 to close on the front foot at 483. The stochastics are about to converge on the upside, and the %K is about to leave the oversold, suggesting a buy signal in the near term. The MACD are also seen converging on the downside. To maintain positive momentum, futures need to break above the 10 DMA at 486.84 and then target the 490 resistance level. On the downside, the break below 477 could set the scene for lower prices towards the support of 471.80. The candle pierced resistance of 481.50, which candles were struggling above in recent sessions, and the indicators point to further upside pressures.

NY 2nd Month Coffee Futures

NY coffee held its nerve yesterday as intraday trading caused futures to close above 40 DMA at 237. RSI is rising marginally, and %K/%D is diverging on the upside towards the overbought area, confirming the change of trend in the near term. The MACD converged on the upside, confirming the continuation of buying momentum. To maintain positive momentum, prices need to close above 240 and then target 244.75. On the downside, the rejection of prices above 240 could trigger losses back to the 10 DMA level at 231.27 before targeting 229.65. Buying pressure has been weak, with volumes reaching December 2019 lows, but the overall trend has been on the upside and the indicator point to an acceleration of that momentum. Futures have been supported above 40 DMA but yesterday’s inside candle, however, confirms a lack of appetite above 240, putting the prices in a tight trading range in the near term.

Ldn 2nd Month Coffee Futures

Ldn coffee futures consolidated the previous day’s losses yesterday. The market closed at 2268, after failing into 2279. The stochastics are diverging on the downside towards the oversold, and the MACD diff is negative and diverging, suggesting softening bearish momentum in the near term. A recent break below the 10 and 40 DMA support levels pointed to strengthening selling pressures, however, prices struggled below 2250 in the last couple of sessions. A breach back above the 2279 level would bring into play the 40 DMA at 2291. Futures need to take out 10 DMA at 2327 in order to confirm the trend. On the downside, the fall below the previous day closing prices could trigger losses through 2210 and 2200. The bullish harami pattern could point to a rejection of lower prices, and we could continue to see prices edge higher in the near term.

NY 2nd Month Cocoa Futures

NY cocoa futures strengthened yesterday as buying pressure triggered a close on the front foot above 2600 at 2617. The stochastics are rising, with the %K/%D diverging on the upside, as the MACD diff is positive and diverging. This suggests we could see a continuation of the trend in the near term, with prices edging towards 2653, before testing the 2675 level, the recent month’s highs. On the downside, the candle found support at 2567, and if the prices were to break through this level, we could see prices retreat back through the 10 DMA at 2541 before 40 DMA at 2507. The three white soldier formation is bullish signal, and we believe the outlook is on the upside.

Ldn 2nd Month Cocoa Futures

Ldn cocoa jumped higher yesterday, as buying pressure triggered a close on the front foot at 1746. The stochastics are rising, with %K/%D diverging on the upside. The MACD diff just converged on the upside, a strong buy signal. Long bullish candle body with long upper and lower wicks suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 100 DMA at 1753, but prices struggled above that level, and we have seen a double top formation at that level in the last couple of month. This would confirm the trend for rising prices up to 1770. On the downside, a breach of support at 61.8% fib level at 1719 would strengthen the bearish momentum. This could also trigger losses back towards 1700. Indicators point to higher prices, but the key resistance at 100 DMA is to be broken to confirm this sentiment.

Contents

Disclaimer

This is a marketing communication. The information in this report is provided solely for informational purposes and should not be regarded as a recommendation to buy, sell or otherwise deal in any particular investment. Please be aware that, where any views have been expressed in this report, the author of this report may have had many, varied views over the past 12 months, including contrary views.

A large number of views are being generated at all times and these may change quickly. Any valuations or underlying assumptions made are solely based upon the author’s market knowledge and experience.

Please contact the author should you require a copy of any previous reports for comparative purposes. Furthermore, the information in this report has not been prepared in accordance with legal requirements designed to promote the independence of investment research. All information in this report is obtained from sources believed to be reliable and we make no representation as to its completeness or accuracy.

This report is not subject to any prohibition on dealing ahead of the dissemination of investment research. Accordingly, the information may have been acted upon by us for our own purposes and has not been procured for the exclusive benefit of customers. Sucden Financial believes that the information contained within this report is already in the public domain. Private customers should not invest in these products unless they are satisfied that the products are suitable for them and they have sought professional advice. Please read our full risk warnings and disclaimers.

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